BlockchainSpotlight

$9 Million for the Internet of Blockchains

Tendermint recently secured a $9 million funding in a Series A financing round led by Paradigm, a $400 million investment firm, along with participation from Bain Capital, 1confirmation, and others. Tendermint is the same firm that is behind the Cosmos Hub, a blockchain platform built to solve the issue of interoperability between any number of different public blockchains. In the official blog post made by Tendermint regarding this announcement, the CEO of Tendermint Inc Jae Kwon states:

The vision of Cosmos is to overcome these limitations and break down barriers to innovation, ultimately creating an Internet of Blockchains: a decentralized network of independent, scalable, and interoperable blockchains.

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This funding comes off just after the mainnet launch of the Cosmos Hub. Part of the funding will be used for the development of the Cosmos network and the rest will be used by the firm to expand its team and build a sustainable development model. This funding shows that interoperability between different blockchains is a thing of interest for the investors. But is interoperability of blockchains such a big issue?

In the modern business world, companies are planning to deploy their own personal blockchain systems. If a project related to healthcare wants to store its information on a blockchain, it certainly wouldn’t want to do so on the main bitcoin blockchain which stores transaction records related to finance. It only makes sense to form separate blockchains dedicated to specific purposes. If a blockchain is related to logistics, it should not get its data mixed with the data of a bank on a public blockchain. This is the reason why various blockchains are rising up with each passing day.

The concept of permissioned blockchain, a blockchain used in confidentiality by a single group, is also gaining strength due to this need of storing data separately rather than on a public blockchain. But as myriads of blockchains spring up, communication between them becomes a severe problem. This is where Cosmos Hub and interoperability steps in to form the internet of blockchains. Some might say the future revolves around the aspect of interoperability between the public and private blockchains.

SEE ALSO: ‘We Are Bridging The Traditional Financial Industry To The New Crypto Industry’: Jack Lu, founder Wanchain

As stated by the founder and chief operating officer of Ternio, Ian Kane, a scalable blockchain platform capable of performing 1 million transactions per second :

“Private or permissioned blockchains have their place specifically in an enterprise environment. Companies will not want to put sensitive data on a public blockchain, because of competitive intelligence issues. I think the future of blockchain will be a combination of both public and permissioned blockchains that have interoperability.”

If the blockchain world flourishes and gains exponential growth in the coming few years, as predicted by many of the tech enthusiasts, the need for communication between them will grow significantly. Allowing data to be shared across different blockchains will be of much importance. Protocols will also need to be decided what amount of data is to be shared and in what capacity. Cosmos network provides just the solution to the problem of interoperability before it becomes much bigger in the future. This is the reason why investors might be hurling towards projects that are focused on solving this issue of interoperability.

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Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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